there has never been a zuiko digital lens produced that is not compatible with the e-520. i think when you say compatible you are talking about the imager AF in Live View mode. every lens will perform the regular AF. don't count out the 14-42 lens just yet, it's a very underrated lens (unless you need it for low light work or super shallow depth of field).

The only compatibility issue was that since the lens is relatively large, the e520 popup flash doesn't raise high enough, and you can get some barrel shadow using wide-angle + built-in flash. A hotshoe/external flash may be better if you're using flash photography

I have the E-520 and 12-60mm.... Autofocus is very fast in daylight as someone has already said. The low light is where is struggles... All in all it I noticed a dramatic difference in the lens from the standard lens.